Long term care insurance with an aging population and

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Long-Term Care Insurance With an aging population, and especially one that is also living longer in general, long-term care is a very important consideration and potentially very costly. Long-term care can decimate an otherwise well- planned estate. The insurance industry’s solution to this problem is long-term care (LTC) insurance , which is coverage that can help pay for care received in a nursing home, assisted living facility, adult day care center, or your personal residence. The Wall Street Journal reports that roughly 20% of Americans, who are at least 65 years old, have a long-term care policy . This is especially troubling since the federal government reports that 70% of those who reach age 65 will need some form of long-term care. (Links to an external site.)Links to an external site. Watch the video below for an overview of LTC insurance. The last minute of the video is an advertisement for the company that made the video; you do not need to watch that... There are three different types of long-term care: skilled care; custodial care; and intermediate care. Skilled care is continuous and medically-necessary care that is required to be administered by a licensed health care provider. This level of care is supervised by a doctor, and it is the highest level of care available without being confined to a hospital. Examples of skilled care include physical therapy, wound care, catheter care, and intravenous injections. On the other end of the long-term care spectrum is custodial care , which is non-medical care that does not require the continual supervision of a doctor. Examples of custodial care include assistance with eating, bathing, laundry, or dressing. Intermediate care is a step between skilled care and custodial care. The idea behind intermediate care is to provide someone with the occasional medical care that is administered by a licensed nurse or nurse's aide. The key difference between skilled care and intermediate care is that intermediate care does not require around-the-clock monitoring. Another factor in considering long-term care is where the care will be administered. One option is within a nursing home. Some nursing homes are great places filled with caring employees. Some are not. Make sure that adequate due diligence is performed before selecting a nursing home for a loved one. A second option is an assisted living facility . Think of an assisted living facility like a college dorm for senior citizens that provides various levels of care. There are facilities available that provide a gradual shift from completely independent living (where residents can come and go as they please in their own car), to assisted living facilities, to skilled care. The last option for the location of care is in the care recipient's own home. Home health care could be the provision of skilled care, intermediate care, or custodial care within the comfort of the recipient's own home. When asked, most people would choose this option.
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  • Spring '14
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